Welfare Reform and Work Bill — Third Reading — 27 Oct 2015 at 19:00

Patrick McLoughlin MP, Derbyshire Dales voted to reduce the household benefit cap, to freeze the rate of many working-age benefits, to reduce social rents in England and for other changes to the benefits system.

The majority of MPs voted to support the Welfare Reform and Work Bill at its third reading, allowing it to continue on its path to becoming law.

Reducing the household benefit cap from £26,000 to £20,000 (£23,000 in London).

Freezing the rate of many major benefits and tax credits for four years; excluding pensioner benefits and many benefits related to disability.

Limiting the child element of universal credit to a maximum of two children.

Reducing rents in social housing in England by 1% a year for 4 years from April 2016

Stopping those on certain benefits being able to claim additional help towards their mortgage payments; replacing the scheme with a loan.

Requiring a series of reports to be produced by the Secretary of State on employment, apprenticeships and troubled families.

The motion being debated was:

That the Bill be now read the Third time.

Impact on Public Spending on Welfare Benefits

The Bill seeks to implement elements of the summer 2015 budget[3]. The budget document states the working age benefit and tax credit freezes were forecast to save £4 billion a year by 2019. The benefit cap reduction was forecast to save £100m in 2016-17 increasing to £495m in 2020-21. The reduction in social sector rents also reduces the spend on welfare benefits via a saving in Housing Benefit. The changes to tax credits in respect of children were forecast to save £1.3bn by 2020-21.

The Bill also removes the work-related activity component in employment and support allowance and the limited capability for work element in universal credit[2].

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